Salisbury MD Real Estate Sales Report for October 2024

October 2024 Salisbury MD Home Sales Statistics In October 2024, the median single family home sales price in the Salisbury MD area real estate market was $290,000, up 2% from the median sales price last October. There were 79 home sales, down 2% from the same month last year.                               The average time on market was 1.2 months, up from 1 month in October 2023.  Currently, there are 2.8 months of supply of homes in Wicomico County. * This is determined by the number of homes available divided by the number of homes sold the previous month. Homes Sold in Wicomico County October 2024 Conclusions for Wicomico County Home Buyers Many prospective Salisbury MD area home buyers have chosen to stay on the sidelines, waiting on 1) the election (which is now over), 2) lower interest rates (which are pushing 7% again) and 3) spring (when more inventory typically becomes available and the school year is wrapping up).  We see some potentially flawed logic in this reasoning. First, markets will do what they’re going to do, regardless of who occupies the White House or controls Congress. That said, policy does matter and can greatly influence the direction the Wicomico real estate (and other markets) will go. It’s certainly understandable if a buyer is concerned about their employment situation and chooses to wait to purchase.  Secondly, there IS a strong probability of several Fed rate cuts in 2025, with mortgage rates expected to follow suit. However, this would put more buyers in the market, increase demand and push up home prices. Any savings in borrowing costs could easily be eroded in this scenario. Plus, those who purchase in the short term will lock in a lower price and begin building equity sooner with the high probability of an opportunity to refinance later.  Third, current market conditions suggest that buyers who purchase now may have an advantage over those who wait. Certainly, there is less competition, meaning sellers will generally be more negotiable on price and repairs. Too, inventory is currently at a high for the year (actually dating back to pre-pandemic levels) Nobody knows how many homes for sale there will be in Wicomico County four to six months from now, but we’re expecting demand to be higher then versus now.  Conclusions for Home Sellers in Wicomico County The trend of slower market conditions that began around mid-year has continued past Q3. It’s not that the Wicomico County housing market is “bad” per se’, it’s simply not as robust as many had grown accustomed to. Election aside, the seasonality of the market appears to have returned after a hiatus from 2020-2022. Typically, Q2 will have the most home sales in the Salisbury MD area with Q3 not far behind. We went into detail on this in the Q3 Housing Report and the September Sales Report. November 2024 Salisbury MD Real Estate Outlook As expected, the Federal Reserve cut its funds rate by 25 bps on Nov. 7. We will be watching closely to see if mortgage rates do the same. Our October projection proved to be accurate. November should end up with around 80 units closed by Thanksgiving weekend and home prices similar to October.  *Based on information from the Coastal Association of Realtors® for the period 10/1/24 through 10/31/24 Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2024  

Q3 2024 Sales Report- Salisbury MD Real Estate

Q3 2024 Housing Statistics    For the period of July 1 through September 30 in Wicomico County, there were 278 settlements on single family housing units, up 10% from Q3 of 2023.   The median sales price was $273,000, up 3% over the same period.   Foreclosure and short sale properties accounted for 4% of single-family home sales in the third quarter of 2024. This was up from 3% over the same period in 2023. *   Takeaways for Salisbury MD Area Home Buyers  A quarterly increase of 10% for home sales year over year may look impressive on paper. But let’s not forget that 2023 posted the lowest sales total for the third quarter since 2014 in Wicomico County. That said, 2024 was the second lowest for Q3 home sales in a decade. Mortgage rates dropping nearly a full percentage point over the quarter weren’t enough to pull the Salisbury MD area real estate market out of its sideways trajectory. Many local home buyers have simply opted to wait for mortgage rates to drop further, while others are on hold until after the election when the Fed meets next. With home inventory at a high not seen in several years and time on market increasing, it may make sense for some buyers to purchase now before rates drop further and higher demand pushes up home prices. Takeaways for Salisbury MD Area Home Sellers For reasons stated above, the leaner home buyer pool is more payment sensitive than ever. It’s imperative for Wicomico County home sellers to recognize that buyers have more homes to choose from, can afford to be patient, and will be firmer in their negotiations. The data backs this up. Year to date, home prices are up 2% versus this time in 2023 (less than the inflation rate). Home sales in the Salisbury MD area are up only 4% over the same period. This simply means that the market is flat, and the shift has been far more noticeable since mid-year. The price of a home remains the single most important factor in how long it will take to sell, or even if it sells at all. What Lies Ahead for the Wicomico County Real Estate Market?  Mortgage rates will continue to be the main driver of the housing market moving forward. Other factors are the election, unrest in the Middle East (think oil prices) and a wobbly labor market. The recent inflation report for the CPI (Consumer Price Index) came in higher than anticipated. In their upcoming November meeting, the Fed will need to determine if inflation has been truly tamed and how to respond. For Q4, we are far from bullish and expect mortgage rates to stay in the mid 6% range for the remainder of the year. About 240 units should close in Wicomico County. This would be on par with Q4 of 2023. *Based on information from the Coastal Association of Realtors® for the period 7/1/24 through 9/30/24 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2024

Salisbury MD Real Estate Sales Report for September 2024

September 2024 Salisbury MD Home Sales Statistics  In September 2024, the median single family home sales price in the Salisbury MD area real estate market was $290,000, up 10% from the median sales price last September. There were 76 home sales, unchanged from the same month last year.     Homes Sold in Wicomico County September 2024  Conclusions for Wicomico County Home Buyers Wicomico County home buyers waiting for a significant drop in mortgage rates may need to wait a bit longer. After last week’s surprising jobs report, mortgage rates rose slightly. We discussed the Fed decision in the August Sales Report. To recap, the markets were certain a rate cut was coming from the Fed and priced it in accordingly before the decision was announced. The next FOMC meeting is in November, just after the 2024 election. With home inventory at a high for the year (both in units and months of supply), buyers have an opportunity now to negotiate their home purchase with less competition. Conclusions for Home Sellers in Wicomico County  A recently published article stated that pending home sales nationwide are at their lowest level since the pandemic of 2020. Further evidence of the shift in the market came from the National Association of REALTORS last week claiming that seasonally adjusted homes sales will be at 3.86M by the end of the year. This will be the lowest total since 1994, when the U.S. had 60 million fewer residents.For perspective, 6.12M homes sold in 2021. An accurate list price is the most important part of a successful home sale. This is more critical now than it has been the last decade. Contact us for details on our pricing strategies and Marketing Plan. October 2024 Salisbury MD Real Estate Outlook  Our September sales projection proved spot-on. October should look very similar with about 75 home sales expected in Wicomico County. All eyes remain on the economy, election and the Middle East as factors shaping the local housing market for the short term. Next week, we’ll publish the Q3 Housing Report. *Based on information from the Coastal Association of REALTORS® for the period 8/1/24 through 8/31/24 Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2024

Salisbury MD Real Estate Sales Report for August 2024

August 2024 Salisbury MD Home Sales Statistics In August 2024, the median single family home sales price in the Salisbury MD area real estate market was $265,000, unchanged from the median sales price last August. There were 89 home sales, down 8% from the same month last year.                              The average time on market was 1.3 months, up from 24 days in August 2023.  Currently, there are 2.1 months of supply of homes in Wicomico County. * This is determined by the number of homes available divided by the number of homes sold the previous month. Homes Sold in Wicomico County August 2024  Conclusions for Wicomico County Home Buyers  The recent 50 BPS rate cut by the Federal Reserve was big news in financial markets. The consensus was for a 25 BPS cut, which was likely “baked in” to current mortgage rates. Salisbury MD area homebuyers would be wise to watch for rate movement in the coming weeks. What else did we learn about the Fed decision? The main thrust for the half percent cut is that the Fed lacks confidence in the economy as the last two Funds rate cuts of this magnitude immediately preceded a recession. In short, the direction of the economy could be good news for home buyers in terms of affordability, at least in the short term. Conclusions for Home Sellers in Wicomico County With interest rates moderating, buyer demand will increase. Longer term, upward pressure on home prices is inevitable if mortgage rates trend down throughout next year. Year to date, the median sales price of a home in Wicomico County is up only 2% (less than the rate of inflation) from the same period in 2023. Several more Fed rate cuts will bring more balance to the market in terms of “latent inventory” as there are many would be home sellers who would make a move with mortgage rates near 5% but not at 7 or 8%. More supply would partially offset the increase in home prices. Contact us for a detailed conversation on the specifics of your situation. September 2024 Salisbury MD Real Estate Outlook  August home sales came in slightly higher than expected. September should be comparable to September of last year, with about 75-80 units sold to close out Q3. Payroll and jobs reports to be released on October 3rd and 4th will provide additional guidance on the direction of the economy and housing markets both nationally and locally. *Based on information from the Coastal Association of Realtors® for the period 8/1/24 through 8/31/24 Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2024